Added to YB: 2026-09-10
Pitch date: 2026-09-08
LLOY.L [bearish]
Lloyds Banking Group plc
+0.81%
current return
Author Info
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Company Info
Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial products and services for retail and commercial customers in the United Kingdom.
Market Cap
GBP 65.4B
Pitch Price
GBP 1.11
Price Target
0.91 (-19%)
Dividend
3.22%
EV/EBITDA
N/A
P/E
14.20
EV/Sales
N/A
Sector
Banks
Category
value
THE NIM ACCRETION TRADE - $LLOY: Too Bullish
LLOY.L (short): At ~112p, Lloyds trades at 1.98x tangible book, its highest multiple in over a decade, versus implied fair values of 91p on 16% ROTE guidance or 97.5p on H1’s 17.1% actual ROTE. Motor-finance redress adds an unpriced binary: Lloyds has provisioned £1.95B against the FCA’s ~£7.5B industry estimate. The short is wrong if Q3 NIM exceeds 330bp and the Tribunal prevents material scheme expansion.
Read full article (1 min)